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- Polygon’s Policy Lead, Rebecca Rettig has shared an open letter sent to the EU to ease its data laws for decentralized software providers.
- Hardware wallet maker also joined in preparing the letter showing a cross-industry solidarity.
Polygon (MATIC) is expanding its role in the crypto ecosystem as it is gradually making moves to influence policymaking at the European Union (EU) level. In a recent letter sent to the European Parliament, the Council of the European Union, and the European Commission, Rebecca Rettig, the Chief Policy Officer at Polygon Labs wants the tripartite body to reconsider its stance on excluding decentralized applications and their software developers from the stringent demands of Article 30 on the data act.
According to the Open Letter shared by Rebecca, the responsible handling of data that seeks to push for accountability within the European Union may be too broad to be enforced within decentralized systems. The EU designed Article 30 drawing on the position that smart contracts involve some forms of data being shared among participants.
While this is true, the Polygon Labs sponsored letter detailed that code developers cannot be held responsible for whatever their inventions is used for.
“Specifically, we seek to clarify the scope and intent of Art. 30 to ensure it accounts for the ways in which smart contracts operate and the potential negative consequences of imposing a requirement for “safe termination or interruption” of such smart contracts in permissionless systems,” the letter reads.
As part of its demands, the letter seeks the EU to narrow down the “scope of Art. 30 to ensure it applies, at most, to permissioned smart contract based-systems owned and operated by an identifiable natural person or corporate entity (i.e., an “enterprise” under the Data Act’s definitions) who has entered into a traditional contractual agreement for the sharing of “personal data” as defined by the Data Act.”
Polygon and Fighting Unwholesome Regulations
As one of the fastest-growing and most versatile blockchain protocols and infrastructure service providers for the emerging Web 3.0 industry, Polygon is stepping into the gap to help channel global regulations to foster and promote decentralized and blockchain-backed innovations.
Polygon recently launched the zkEVM protocol, pushing on the frontlines of Layer-2 protocols with massively scalable technology. As protocols are gearing to launch on the zkEVM protocol, an allowance that is not limited to countries or continents, a stringent rule as currently contained in Article 30 of the Data Act may largely scare its prospective developers away.
On the other hand, should there be less stringent rules applied to these Web3.0 innovators, Polygon is bound to unleash a multi-billion dollar industry that can be a game changer in both the decentralized finance (DeFi) ecosystem as well as the Non-Fungible Token (NFT) ecosystem respectively.
The Open Letter received a contribution from hard wallet maker Ledger and according to Rebecca, the team will continue to push lawmakers to ensure a favorable regulation will be introduced into the ecosystem.
5/ We will continue to engage constructively with policymakers and regulators in the EU (and beyond) to ensure that any regulation is evergreen, can grow with the innovation & also build sufficient guardrails for users of blockchain-based software.
— Rebecca Rettig (@RebeccaRettig1) April 17, 2023
